Predictive analytics

Data analytics has become very important in the decision-making processes of small and large enterprises and Predictive analytics in retail banking refers to the use of computer models that rely on artificial intelligence and data mining to analyze large amounts of information and to predict future customer behaviour.

The vast structured and unstructured data generated by many devices in various platforms have given stupendous insights. With the help of data analytics and data management, the Banking and Finance Services Industry (BFSI) has used Big Data to boost organizational success and ensure risk management, profitable growth, and performance.

Improving reliability, performance, and safety are among the top priorities for industrial organisations and businesses today. There are various analytics available that help organisations gain the highest return on critical assets by supporting predictive maintenance programs.

Predictive Analytics is a stream of advanced analytics that uses new and historical data to forecast activity, behaviour, and trends to predict the future. Data analytics in banking involves data mining, modelling, statistical analysis techniques, and automated machine learning algorithms to make predictions. By leveraging data with predictive AI, you can create effective marketing strategies and drive even better decisions.

At the same time, Big data is also used by various banks to get to know their customers. As a result, they create products, services, and other offerings based on existing customer profiles that are tailored to their specific needs. A survey says, every credit card transaction, every message you send, every website you visit... It all adds up to 2.5 quintillion bytes of data produced by the global population every day.

The banking sector is the engine that powers economies, nations, and organizations. It also produces massive amounts of data every second. Every transaction leaves a trace and generates data that was previously thought to be static and only useful to auditors for the purposes of accounting and auditing.

Big data is used by the banking industry to get to know their customers. As a result, they create products, services, and other offerings based on existing customer profiles that are tailored to their specific needs.

Whereas, a form of predictive analytics for marketing campaigns attempts to identify target markets or people who could be convinced to buy products. The customer segmentation divides a market into categories that share similar attributes such as age, location, gender, habits, and so on.